Sensex Ends 30 Points Lower, Falls 1% For The Week

Sensex Ends 30 Points Lower, Falls 1% For The Week

Sensex fell for third day in a row while the broader Nifty closed below its crucial psychological level of 8,150 on the back of selling pressure in metal, oil & gas, banking and FMCG shares.

For most part of the day the benchmark indices swung between gains and losses as markets looked to settle down after the US Federal Reserve issued an outlook that was more hawkish than expected. Sensex fell 1 percent while Nifty closed 1.5 per cent lower for the week.

As the dollar stood near a 14-year peak, global markets continued to adjust to the idea of higher US interest rates after the Fed raised rates on Wednesday for the first time in a year and projected three more increases in 2017, up from two forecast in September.

Indian stock markets look more vulnerable than other emerging markets due to the ongoing demonetisation drive and its possible heavy impact on corporate performances.

"The markets have become highly rangebound in the last one month or so. The Nifty is hardly moving in a 100-point range and the Sensex is moving in a 500-point range. This tight range will continue for some time," said Kunj Bansal, chief investment officer, Centrum Wealth Management Ltd. 

"The major triggers - the RBI credit policy and the US Fed decision - are over. Now, the next earliest trigger would be the earnings season, starting in the second week of January. Pending that, the market will remain rangebound." 

The Sensex fell 29.51 points or 0.11 percent to settle at 26,489.56 and Nifty declined 14.15 points or 0.17 percent to shut shop at 8,139.45.

Among decliners, Aurobindo Pharma shares fell as much as 4.34 percent to a nine-month low as the company was named in a lawsuit alleging it colluded with other drugmakers to fix prices of two commonly used drugs in the United States. The stock closed 0.5 percent lower at Rs 690.65.

Hindalco, Axis Bank, Idea Cellular, Kotak Mahindra Bank, BPCL, Lupin, Wipro and Coal India were also among the losers in the Nifty.

The broader markets also faced selling pressure as BSE mid-cap and small-cap indices ended lower.

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